Presentation on theme: "In partnership with RECRUITMENT THE PRACTICE OF 2021 2011-2021 MGI UK & Ireland Conference 2011 2 nd December 2011 Presented by Karen Young, Hays Specialist."— Presentation transcript:
In partnership with RECRUITMENT THE PRACTICE OF 2021 2011-2021 MGI UK & Ireland Conference 2011 2 nd December 2011 Presented by Karen Young, Hays Specialist Recruitment
2 SHORTAGE OF THE RIGHT PEOPLE AND SKILLS IN THE RIGHT PARTS OF THE WORLD FUNDAMENTAL FUTURE WORKFORCE CHALLENGE
3 SETTING THE SCENE Global labour markets are set for an unprecedented upheaval in the next two decades Let the statistics tell the story – the worlds labour force will increase by more than a fifth by 2030 (more than a billion people) however all of that growth will occur in developing economies The workforce in most developed economies will plateau, decline and age Shift in economic power from the developed to the developing world as that new workforce is put to work and generates wealth
CREATING JOBS IN A GLOBAL ECONOMY THE HAYS/OXFORD ECONOMICS GLOBAL REPORT 4
5 BACKGROUND At Hays we wanted to understand how global trends might impact our own recruitment business over the next 20 years Our customers were already concerned about the skills shortages they were facing Oxford Economics provided a globally consistent analysis of demographic and macroeconomic developments across the worlds major economies Analysis of industrial sectors and the labour market Input from one of the UKs leading academic labour market economists, Professor Ken Mayhew of Oxford University
6 HOW WILL LABOUR MARKETS CHANGE BETWEEN 2010 AND 2030?
7 IMPACT OF EXPECTED SECTORAL SHIFTS BETWEEN 2010-2030
8 DO EMEs HAVE SUFFICIENT SKILLED LABOUR? Over the past decade, number of university graduates increased by 30% in China and 6.3% in India. UK (3.3%) Expected to continue as still well behind West Quality of degrees? Shortage of experienced skilled labour in these countries. Need for inward migration
10 ANY REASONS FOR OPTIMISM FOR SKILLED LABOUR MARKETS IN THE WEST – YOUR OWN AND YOUR CLIENTS? Europe and North America are world leaders in several high value added sectors (financial services, R&D, pharmaceuticals research and aerospace engineering) Export opportunities – as per capita incomes rise in developing countries, large numbers of people afford products for the first time Increasing integration will require rising levels of intermediation Increase demand for financial and business services High quality university education means developed countries will remain big suppliers of skilled labour to developing economies
11 A CALL TO ACTION HAYS FIVE POINT PLAN Keep national borders open for movements of skilled labour Agree international code to facilitate employee migration Invest in skills and training Develop sector specific strategies Retain older people in the workplace
12 KEEP NATIONAL BORDERS OPEN FOR MOVEMENT OF SKILLED LABOUR Issue Developing MarketsDeveloped Markets Worker population Rapid and significant growthStatic, declining Sector shiftsAgrarian to industrialServices High value Skills MatchHigh end – acute existing shortage Lower end - surplus High end – existing shortage Lower end – forecast shortage Solution:Ensure migration laws allow appropriate transfer of skilled labour between countries
13 INVEST IN TRAINING AND EDUCATION Developing Job Market Developed Job Market Governments to build skills in areas that suit the local economy Develop higher education systems in all countries Employees to focus on industries where technology drives productivity, not replacement Access to re-skilling in developed markets Leverage major new markets as populations and prosperity grow High end High skilled Semi-skilled Routine Low end Face to face Roles
14 DEGREE EDUCATION Degree classification – what is classed as a first rate degree? Reputation of the university? Content of the course? Vocational rather than academic? What role are employers taking in influencing the development of relevant courses for business? Employer engagement examples e.g. Durham University
15 WHAT MIGHT BE HAPPENING IN YOUR CUSTOMERS? SECTOR SPECIFIC FACTORS OVERLAY THE MACRO ECONOMIC TRENDS Financial services Likely to remain key in existing locations Will require more resources and more advanced skills Healthcare Significant additional demand from the West Further pressure on existing shortages in developing world Climate change Jobs losses in fossil fuels Offset by net job creation in renewable energy Knock-on impact in manufacturing and production Infrastructure Massive investment in developing markets Acute shortages of advanced skills
16 RETAIN OLDER PEOPLE IN THE WORKPLACE Implications Maintaining modern and relevant skills Propensity for part- time/self employed Leveraging experience base Safety nets for displacements Age profile
17 THE AGE DEBATE The worlds population is ageing very fast Future retirement age in the UK set to rise to 66 for women and 68 for men in 2044 Different labour market characteristics – self-employed, part-time, temporary i.e. more flexible way of working Is this supply-led or demand-led? If supply-led, this will likely reduce the supply of skilled labour available to recruit. If demand-led it is a sign that older workers will change work patterns to fit employers needs It is as yet uncertain which is the dominant cause but it will shape the profile of a future workforce
18 GENERATION Y Have we entered a new generation in the last few years? Generation Y has to be recognised What is Generation Y? Generation born between 1980 and 1993 Shape and influence professional practice for future decades What are the specific challenges to recruit, develop, engage and retain the future human capital (Generation Y) of your practice to ensure continued value creation?
19 HEADLINES Dynamic career progression yet diverging career expectations Classic finance career path - progression and success indicated by increasing knowledge and expertise New directions – breadth of experience outside of traditional mainstream finance roles Generation Y = huge potential = opportunity Generation Y = high expectations = potential threat
20 GENERATION Y: REALISING THE POTENTIAL Report/joint research paper by ACCA and Mercer Attraction – how do you open the door to young talent? Lifestyle factor Development – unleash the potential but at what cost? Retention – how do you keep hold of them? Mobility and career ladder
21 DONT JUST TAKE MY WORD FOR. HERE IS WHAT THEY HAVE TO SAY… I really feel a company should be environmentally friendly. The brand is important because it reflects on me as an individual. The most important thing for me is the career development an organisation can offer me. I cannot praise my team enough, it is a special experience to work with them. I feel the finance job I am doing now was a little mis-sold to me. There is limited career opportunity and progression.
22 WAR FOR TALENT Over 3,000 finance professionals of Generation Y took part in the survey Hard reality – over one third said they wanted to leave their current employer at the present time and over half do not expect to be with their current employer in 3 years time
23 ATTRACTION WHAT COUNTS FOR THIS GENERATION? Career development and learning opportunities Remuneration (base salary) Job security Job content Lifestyle
24 DEVELOPMENT WHAT MATTERS? Hands-on generation Experiential learning and training at the heart New learning interventions Its not all about e-learning despite what you may think Career trajectory and ownership
25 RETENTION AVOID WALK AWAYS Challenging work Strength of team and line manager relationships Keep the career promise One size does not fit all
26 CUSTOMER CONTROL WHAT DO THEY WANT? More for less 24-7 in competitive market The rise of the business partner – internal and external Cost or relationship? Your best people
27 JOIN-UP? ITS POSSIBLE Generation Y thirst for 24-7 media Job content – 60/40 rule and diversity Importance of mentor systems/career case study experiences Think about your brand and footprint – social media strategy Corporate social responsibility Strength of team/line manager relationships – inclusive not exclusive Keep the career promise
28 HOT TOPICS WHATS HAPPENING TODAY WILL IT AFFECT TOMORROW? The rise of professional networking and social media Internal resource models – staff pools Off-shoring – the future for large firms? Graduate and school leaver recruitment strategy Outsourcing
29 CRYSTAL BALL WHAT IS THE FUTURE? Fewer transactional staff based in UK and lots of off-shoring for the larger firms Transition to UK career based in predominantly advisory work Reduction in numbers of accountants in training More sharing of human resource – MGI staff bank? Older workforce combined with a new generation – flexible work/life balance School leaver recruitment above graduate CIMA into practice to aid business partnership advice
30 2021…NOTHING IS FOR CERTAIN BUT ONE THING WILL REMAIN… THE BEST FINANCIAL CANDIDATES IN THE MARKET WILL BE ALREADY EMPLOYED AND THERE WILL STILL BE A WAR FOR THE BEST TALENT
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